Tajul Islam

Bangladesh Bank Governor Ahsan H Mansur has said that assets and money laundered abroad from Bangladesh can potentially be frozen within a year if legal and procedural steps are swiftly executed.

Speaking at a press briefing at the Foreign Service Academy on May 18, Governor Mansur said, “Generally, four to five years are required to complete the legal procedures to bring back the laundered money. But some intermediate measures like freezing the assets could be done. It may take one year or less.”

The press briefing followed a high-level meeting on asset recovery efforts held at the State Guest House Jamuna, chaired by Chief Adviser Professor Muhammad Yunus. The discussions focused on the progress of recovering funds illicitly transferred out of Bangladesh, and explored avenues to speed up this process.

Governor Mansur noted that completing the domestic legal procedures is essential before seeking cooperation from foreign jurisdictions. “We are on this process now. We are sending the requests. And if we get this assistance from foreign governments and institutions, we will be able to freeze the laundered assets,” he said.

Once assets are frozen abroad, the next step involves initiating court proceedings in the respective jurisdictions, which typically takes four to five years. However, freezing these assets early could prevent further transfer or misuse, acting as a significant interim success in the broader recovery process.

The governor informed that the government is actively sending Mutual Legal Assistance (MLA) requests to various countries, seeking cooperation in tracing and freezing the laundered funds. Several international institutions have already been contacted to assist in this effort.

Sunday’s meeting also reviewed the management of seized funds deposited in local banks and the confiscated shares of various financial institutions. A key part of the discussion was how to protect depositors’ interests in banks affected by financial misappropriation.

Mansur emphasized that safeguarding depositors’ funds remains a priority, especially when some of the laundered money was linked to irregularities and embezzlement in the banking sector.

Chief Adviser Muhammad Yunus is also set to raise the issue of money laundering during his upcoming official visit to the United Kingdom. According to Mansur, this diplomatic engagement is expected to add momentum to the government’s efforts to bring back siphoned-off money and reinforce international cooperation.

Chief Adviser’s Press Secretary Shafiqul Alam was also present during the briefing and echoed the central bank’s commitment to accelerating recovery operations.

Meanwhile, Bangladesh’s foreign exchange reserves currently stand at $25.44 billion. However, following the International Monetary Fund (IMF)’s Balance of Payments and International Investment Position Manual (BPM6) methodology, the reserves are calculated to be $20.07 billion, according to a Bangladesh Bank press release issued earlier on May 19.

The central bank’s initiative comes at a time when concerns are rising about capital flight and the erosion of public trust in the banking system. Analysts believe that expedited action on asset recovery will not only bolster economic stability but also serve as a strong deterrent against future illicit financial outflows.